Corporate social responsibility and bank risk

Abstract The concept of sustainable banking has developed significantly in recent years. Previous research found that corporate social responsibility reduces firm risk, yet this empirical evidence refers almost exclusively to non-financial companies and it remains unclear whether the risk-mitigating effect stems from environmental, social, or governance pillar. paper aims analyse impact activities on bank risk explore its determinants. Using a sample 582 banks worldwide over period 2002 2018, we confirm risk-reducing activity an aggregated level. decomposition suggests environmental determine mitigation. In contrast, do not show similarly unambiguous results. way, our analysis highlights great importance aspects banks’ management.